Moody's may lower Leggett & Platt

Moody's Investors Service said it placed Leggett & Platt, Inc.'s A3 long-term debt ratings on review for possible downgrade due to the ongoing deterioration in consumer spending, notably in residential and automotive related sectors, which comprise about half of the company's product mix.

The Prime-2 commercial paper rating is not on review, the agency noted.

"The review for downgrade reflects its concern that Leggett's credit metrics will remain below its expectations for its rating category over the medium term due to a continued weak economic outlook for its key sectors," said Kevin Cassidy, senior credit officer at Moody's.

Moody's said its review will focus on the outlook for the company's profitability and cash flow generation over the medium term.

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